Brexit and the weak pound are driving an online boom for British exporters

LONDON — British firms have seen a dramatic uptick in
international sales since the Brexit vote, according to data from
PayPal.

The online payment firm found that small and medium-sized
businesses (SMEs) — those turning over less than £1 million a
year — saw international PayPal sales more than treble after the
June referendum, boosted by
a weak pound which makes products cheaper for foreign buyers.

Sales from SMEs to foreign buyers rose 10% year-on-year from
January to June 2016, then 34% year-on-year from July to
December. The amount international shoppers spent with UK SMEs
rose 13% per transaction in the six months following the Brexit
vote.

Online SMEs were well equipped to navigate the unpredictable
market conditions following the EU referendum result, according
to PayPal.

Mark Brant, managing director at PayPal UK, said: "When the pound
dropped and the buying power of international shoppers increased,
we expected to see a surge in online exports.

Of course, lower prices played a major part in boosting
international sales, but there were many other contributing
factors."

He said that firms which had adapted online stores to make them
more appealing to foreign buyers had benefited the most from the
export boost.